Correlation Between TGCC SA and AFMA ASSUREUR
Can any of the company-specific risk be diversified away by investing in both TGCC SA and AFMA ASSUREUR at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining TGCC SA and AFMA ASSUREUR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TGCC SA and AFMA ASSUREUR SEIL, you can compare the effects of market volatilities on TGCC SA and AFMA ASSUREUR and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in TGCC SA with a short position of AFMA ASSUREUR. Check out your portfolio center. Please also check ongoing floating volatility patterns of TGCC SA and AFMA ASSUREUR.
Diversification Opportunities for TGCC SA and AFMA ASSUREUR
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between TGCC and AFMA is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding TGCC SA and AFMA ASSUREUR SEIL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFMA ASSUREUR SEIL and TGCC SA is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on TGCC SA are associated (or correlated) with AFMA ASSUREUR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFMA ASSUREUR SEIL has no effect on the direction of TGCC SA i.e., TGCC SA and AFMA ASSUREUR go up and down completely randomly.
Pair Corralation between TGCC SA and AFMA ASSUREUR
Assuming the 90 days trading horizon TGCC SA is expected to generate 5.95 times less return on investment than AFMA ASSUREUR. In addition to that, TGCC SA is 1.92 times more volatile than AFMA ASSUREUR SEIL. It trades about 0.03 of its total potential returns per unit of risk. AFMA ASSUREUR SEIL is currently generating about 0.37 per unit of volatility. If you would invest 113,500 in AFMA ASSUREUR SEIL on December 24, 2024 and sell it today you would earn a total of 11,500 from holding AFMA ASSUREUR SEIL or generate 10.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
TGCC SA vs. AFMA ASSUREUR SEIL
Performance |
| Timeline |
| TGCC SA |
| AFMA ASSUREUR SEIL |
TGCC SA and AFMA ASSUREUR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TGCC SA and AFMA ASSUREUR
The main advantage of trading using opposite TGCC SA and AFMA ASSUREUR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TGCC SA position performs unexpectedly, AFMA ASSUREUR can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in AFMA ASSUREUR will offset losses from the drop in AFMA ASSUREUR's long position.The idea behind TGCC SA and AFMA ASSUREUR SEIL pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| AFMA ASSUREUR vs. MICRODATA | AFMA ASSUREUR vs. CFG BANK | AFMA ASSUREUR vs. CREDIT IMMOBILIER ET | AFMA ASSUREUR vs. BANK OF AFRICA |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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